Computer software is a unique consumer product in that the same product can be replicated many times after being sold. Once a software product is sold, typically as software code on a computer-readable disk, the purchaser can easily copy the code to other computer-readable media thereby replicating the same product many times over.
This characteristic of software can be a tremendous benefit in terms of lowering manufacturing costs and facilitating distribution. For instance, easy replication allows a software manufacturer to distribute one physical copy of the software product and sell a multi-seat license that legally empowers the purchaser to install the software product on many different computers.
Unfortunately, this benefit comes at a cost of open abuse. One well-known abuse is piracy. An unscrupulous party can obtain a copy of the object code (legally or illegally) and then illicitly replicate and resell pirated copies of the product. Software companies attempt to monitor piracy activities, but detection is often difficult. Moreover, even when improper activity is detected, enforcement and legal recourse is often unavailable from a practical standpoint, particularly since much of the abuse occurs in foreign lands.
The computer software industry estimates billions of dollars are lost each year due to piracy and other illicit uses. To eliminate some of these losses, software manufacturers may require individual licenses rather than multi-seat licenses. These individual licenses are entered into before allowing a software product to operate. A user installing a software product with an individual license typically needs to activate the software product and license before using the software product.
Activation of the software product may be accomplished by telephoning a customer service representative and verbally transmitting a product ID and a H/W ID (some information regarding the user's computer hardware). In return, the customer service representative verbally transmits a confirmation ID for the user to enter into his computer to activate the software product. Alternatively, the software product may be activated without telephoning a customer service representative, such as through an Internet connection to an activation server.
Although these software product licenses work fairly well, there are some problems. One problem is that a hacker may attempt to circumvent the activation process and activate a software product without a valid license.
Accordingly, there remains a need for improved technology solutions to combat piracy and illicit use of software products by providing licenses on a temporary and permanent basis, while recognizing and accommodating the needs and practices of a legitimate purchaser.